In 2021, four congressional Democrats argued for a threshold in line with the historical high point of salary thresholds the 55th percentile of earning of full-time salaried workers nationwide. That would have resulted in a threshold of, Webinar The Department of Labor (DOL) The overtime threshold is a salary level used to determine which employees are eligible to receive overtime pay when they work over 40 hours in a single workweek. Matt Popovich. "Thus, it is premature to make internal changes to pay policies in anticipation of the rulemaking. Notably absent from the spring regulatory agenda is an entry for an FLSA independent-contractor rulemaking, given that a recent blog post on the DOL's website stated that such a proposal is in the works, Plunkett said. Another item on the list of DOL priorities may be the creation of an automatic annual or periodic increase to the salary level by indexing it to the consumer price index or another economic indicator so that the amount will increase without the DOL having to undertake formal rulemaking. With the issuance of its spring regulatory agenda on June 21, the U.S. Department of Labor (DOL) announced that its proposed overtime rule is now tentatively slated to be released in October. However, on March 14, 2022, a district court vacated the Department's rules to delay and withdraw the Independent Contractor Status Under the Fair Labor Standards Act . Starting in June 2020, employees were required to return to work onsite full-time. The DOL's new overtime rule is expected to raise the minimum salary for most overtime-exempt employees and possibly update the duties tests as well. ET, Webinar The new standard will revise the 2020 Trump Administrations final rule, which reversed the Obama-era NLRB decision in the 2015Browning-Ferris Industriescase and established that an entity can only be a joint employer if it actually exercises control over the essential terms and conditions of another employers employees. Read on for everything you need to know. Please purchase a SHRM membership before saving bookmarks. The Overtime Rule. These exemptions are commonly referred to as the white-collar or EAP exemptions. The salary basis threshold was increased in 2019 from $23,660/year to $35,568/year. .usa-footer .container {max-width:1440px!important;} According to FTC Chair Lina M. Khan, Noncompetes block workers from freely switching jobs, depriving them of higher wages and better working conditions, and depriving businesses of a talent pool that they need to build and expand. The FTC cited research showing that noncompete agreements restrict the mobility of impacted workers thus harming competition in the labor markets. Democrats want OT salary threshold upped to $82,732 by 2026. Many experts expect the DOL to set the salary threshold around $800 the mid-point between the current level and the proposed 2016 level. While that guidance is onlytemporary, DHS issued aRequest for Public Input (RPI) on October 26, 2021, to determine whether those flexibilities should be kept in place permanently. In October 2022, DOL's Employment and Training Administration (ETA) plans to issue an NPRM to establish "a new wage methodology for setting prevailing wage levels for H-1B/H-1B1/E-3 and PERM programs consistent with the requirements of the Immigration and Nationality Act.". Every employer of employees subject to the Fair Labor Standards Act's minimum wage provisions must post, and keep posted, a notice explaining the Act in a conspicuous place in all of their establishments. Trumps DOL then revisited the threshold, agreeing that an increase was needed, but one far below the rate Democrats had planned. .manual-search ul.usa-list li {max-width:100%;} (2015). }); if($('.container-footer').length > 1){ The Department of Labor remains committed to addressing the issue of misclassification.. The overtime rule was first slated for April 2022 and then for October 2022, so another delay would not be unusual. The district court further sent the DACA policy to the DHS for further consideration. The background: The overtime rule, part of the . Gain the intel you need now to successfully anticipate and navigate employment laws, stay compliant and mitigate legal risks. NAM Vice President of Infrastructure, Innovation and Human Resources Policy Robyn Boerstling joined us to explain what's happening. Many in the business community believe that current hiring and retention issues, supply chain disruptions, and inflationary pressures are all reasons why the DOL should not proceed with a rulemaking.". Topics covered: Employee learning, training, onboarding, mentoring, career development and more. Generally, the rule applies to any salaried worker who does not supervise other workers and makes less than $684 a week . Review Administrator Interpretations, Opinion and Ruling Letters as well as pertinent chapters of the WHD Field Operations Handbook. All rights reserved. Employers can change that, Twin Cities hospital workers call out racism, demand change from employers, Top 10 Workplace Trends for Thriving Work Environments, Caregiving Support: A Smart Investment for Employers in an Uncertain Economy, 5 Workplace Gaps Employers Cant Afford to Ignore, Top Compensation Sins HR Execs Must Avoid, Rethinking Population Health and the Intersection of the Primary Care Experience, NLRBs severance ruling has broad implications for employers. The FLSA does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest, unless overtime is worked on such days. DOL addressed the topic again in 2019 and enacted changes on January 1, 2020. The amount for small employers will increase again on Jan. 1, 2023 to $15 per hour. Shortly thereafter, President Donald Trump took office and DOL abandoned its defense of the rule. In 2016, a proposed change would have moved the salary threshold from $455 per week ($23,660 annualized) to $913 per week ($47,476). The integral factor, which considers whether the work is integral to the employers business, is also included. Procedures on voluntary recognitionof unions. In 2021, four congressional Democrats argued for a threshold in line with the historical high point of salary thresholds the 55th percentile of earning of full-time salaried workers nationwide. That would have resulted in a threshold of $82,732 by 2026, the letter said. While independent contractors have an important role in our economy, we have seen in many cases that employers misclassify their employees as independent contractors, particularly among our nations most vulnerable workers, said Secretary of Labor Marty Walsh. According to the IRS, the standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The move would have entitled millions more employees to overtime pay, economists estimated, but it was halted when a federal judge enjoined the rule just days before it was set to take effect. In fact, Walsh indicated in the June hearing that the DOL thinks the rule should be reviewedand possibly updatedregularly. On June 7, ICE sent its proposal to the Office of Information and Regulatory Affairs (OIRA). Federal government websites often end in .gov or .mil. The federal rules governing overtime pay were established by the Fair Labor Standards Act (FLSA), which also described which workers are exempt from . Ruling on a narrow, but significant question, the US Supreme Court affirmed that the white . The proposed rule would provide guidance on classifying workers and seeks to combat employee misclassification. An agency within the U.S. Department of Labor, 200 Constitution Ave NW Therefore, do not send or include any information in your email that you consider to be confidential or privileged. Please enable scripts and reload this page. The agency took meetings and held online listening sessions with stakeholders last year. When finalized, the plan will set forth the EEOCs enforcement priorities. The Internal Revenue Service has increased by three cents per mile, the optional standard mileage rates used to calculate the deductible costs of operating an automobile for business purposes. .usa-footer .grid-container {padding-left: 30px!important;} The law covers virtually every employer . They are not intended either as a substitute for professional advice or judgment or to provide legal or other advice with respect to particular circumstances. "This type of change would also disqualify many currently exempt employees from their current exempt status," he said. The .gov means its official. As with the overtime rule, the final independent contractor rule would take effect no sooner than 60 days after it is published in the Federal Register. SUMMARY: This notice of proposed rulemaking (NPRM) proposes to rescind the final rule entitled "Joint Employer Status Under the Fair Labor Standards Act," which published on January 16, 2020 and took effect on March 16, 2020. The Biden administration has signaled its desire to return to the approach attempted in 2016. }); if($('.container-footer').length > 1){ While employers should be monitoring these potential changes, the regulatory process is still in the early stages, said Jim Plunkett, an attorney with Ogletree Deakins in Washington, D.C. "At this time, stakeholders do not even know what changes the DOL will propose, much less finalize," he said. The U.S. Department of Labor in September 2019 updated the federal overtime rules regarding executive, administrative, and professional workers. The new proposal is likely to be issued in the near future and could be issued as early as this month. Please press Ctrl/Command + D to add a bookmark manually. Employment and Training Administration Strengthening Wage Protections for the Temporary and Permanent Employment of Certain Aliens in the United States, In October 2022, DOLs Employment and Training Administration (ETA) plans to issue an NPRM to establish a new wage methodology for setting prevailing wage levels for H-1B/H-1B1/E-3 and PERM programs consistent with the requirements of the Immigration and Nationality Act. The proposal will likely amend the Trump administrations final rule that was scheduled to take effect on November 14, 2022, but was subsequently vacated by a federal court in June 2021. /*-->*/. FTC Proposed Rule Would Ban Noncompete Agreements The Federal Trade Commission (FTC) has proposed a rule that would ban employers from imposing noncompete agreements on their employees. This material was created to provide accurate and reliable information on the subjects covered but should not be regarded as a complete analysis of these subjects. In the spring regulatory agenda, the U.S. Department of Homeland Security (DHS) announced that it plans to issue a final rule on Deferred Action for Childhood Arrivals (DACA) in August. The division encourages all stakeholders to participate in the regulatory process. The DOL promised to consider this feedback and may make changes to its draft rule before publishing a final version. The DOL's December agenda appears to be the first real step in that direction, announcing it will propose an update in . An HR Advisor is here to help by email, live chat, or phone. Today, the Office of Federal Contract Compliance Programs (OFCCP) acted to protect workers from discrimination and safeguard principles of religious freedom by rescinding the rule, "Implementing Legal Requirements Regarding the Equal Opportunity Clause's Religious Exemption.". CUPA-HR filedcommentsin opposition to the Trump administrations regulations on the issue andin responseto the Biden administrations RFI. Marty Walsh, the Secretary of Labor indicated previously that the salary basis threshold is too low and as part of the review, the DOL will consider whether regular and automatic updates are needed. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. | 2 p.m. It need not coincide with the calendar week, but may begin on any day and at any hour of the day. Then the final rule would need to take effect no sooner than 60 days after it is published in the Federal Register, assuming it is classified as a major rule. #block-googletagmanagerheader .field { padding-bottom:0 !important; } Once a sleepy area of employment law, the FLSAs regulations took the spotlight when the Obama administration announced its intent to update the rules floor for overtime eligibility. Labor Rights. All rights reserved. Topics covered: Pay & bonuses, salary history, pay transparency, raises, total rewards, and more. According to the agency's regulatory agenda, this proposed rule is expected to address how to implement the exemption of executive, administrative and professional employees from the Fair Labor . @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} Restore the multifactor, totality-of-the-circumstances analysis to determine whether a worker is an employee or an independent contractor under the FLSA. The site is secure. Misclassification is a serious issue that denies workers rights and protections under federal labor standards, promotes wage theft, allows certain employers to gain an unfair advantage over law-abiding businesses, and hurts the economy at-large. Access a collection of interactive online tools and presentations that address overtime pay requirements. Please log in as a SHRM member. The agenda says they will have proposed rule revisions and . Neil Reichenberg is the former executive director of the International Public Management Association for Human Resources. Modify the duties tests so more employees are classified as non-exempt, and. These factors include the investment, control and opportunity for profit or loss factors. More than 54,000 people submitted comments on the rule. Those changes, however, were less significant than the 2016 efforts to modify FLSA provisions, which were halted later due to a preliminary injunction. Learn more by reading fact sheets that cover a variety of overtime topics. Washington, DC 202101-866-4-USA-DOL1-866-487-2365www.dol.gov, Misclassification continues to deny workers rightful wages; hurt businesses, economy, Industry-Recognized Apprenticeship Programs (IRAP), Bureau of International Labor Affairs (ILAB), Employee Benefits Security Administration (EBSA), Employees' Compensation Appeals Board (ECAB), Employment and Training Administration (ETA), Mine Safety and Health Administration (MSHA), Occupational Safety and Health Administration (OSHA), Office of Administrative Law Judges (OALJ), Office of Congressional and Intergovernmental Affairs (OCIA), Office of Disability Employment Policy (ODEP), Office of Federal Contract Compliance Programs (OFCCP), Office of Labor-Management Standards (OLMS), Office of the Assistant Secretary for Administration and Management (OASAM), Office of the Assistant Secretary for Policy (OASP), Office of the Chief Financial Officer (OCFO), Office of Workers' Compensation Programs (OWCP), Ombudsman for the Energy Employees Occupational Illness Compensation Program (EEOMBD), Pension Benefit Guaranty Corporation (PBGC), Veterans' Employment and Training Service (VETS), Economic Data from the Department of Labor, Learn more about the Wage and Hour Division, Federal court orders Hyundai, Kia auto parts manufacturer to stop employing minors illegally, end oppressive child labor law violations, US Department of Labor hosts annual conference for nations mine safety, health trainers at National Mine Health and Safety Academy, Oct. 11-13. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRMs permission. Although there are no legal implications regarding the administration's failure to issue the agenda in a timely manner, there are important considerations for the regulated community. The Department of Labor's Wage and Hour Division is expected to propose new rules on independent contractor classification and overtime entitlement requirements in the . In 2016, a proposed change would have moved the salary threshold from $455 per week ($23,660 annualized) to $913 per week ($47,476). The DOL plans to make the changes effective in 2023. Webinar URL: https://www.complianceprime.com/details/980/new-proposed-overtime-rule-2022The Department of Labor will soon issue new . .paragraph--type--html-table .ts-cell-content {max-width: 100%;} To find out more about our use of cookies and how to change your settings, please go to our Privacy Policy. Conversely, there is nothing stopping the DOL from issuing new rules before its target dates, either. [CDATA[/* >
March 11, 2023indy 500 general admission